MYbank serving 45 million SME clients by leveraging digital tech

MYbank, an online private commercial bank and an associate of Ant Group, reported that it served over 45 million small-and-micro enterprise (SME) clients at the end of 2021, representing a nearly 30 percent increase year-on-year, according to its 2021 annual report.

How has MYbank improved SME financing?

Leveraging its mobile app and cloud-based infrastructure, MYbank pioneered the “310 lending model”. Using this innovative model, it takes SME owners just a few clicks on their phones to obtain a collateral-free business loan. The entire application process can be completed within three minutes, approved within one second and requires zero human interaction.

The model is making mobile financing more accessible to SME owners. More than 80% of MYbank’s new clients in 2021 were first-time borrowers. The average borrowing period was about 3 months, with 70% of interest per loan below RMB100 (approximately US$15).

Utilizing tech like graph computing, multimodal recognition, blockchain and privacy-preserving computation, MYbank’s supply chain financing solutions support blue-chip brands by providing more financing options for small-and-medium-sized enterprises in their supply chains.

How influential is MYbank in China?

In 2021, more than 500 major brands such as China Mobile, Haier and Mengniu Dairy implemented MYbank’s supply chain financing solutions, which helped to increase the accessibility of small-and-medium-sized enterprise loans to 80% in their supply chains.

In 2021, MYbank continued to invest in tech solutions to make digital small-and-medium-sized enterprise (SME) financing more accessible to clients in rural areas. For example, using remote sensing technologies on farmland, MYbank can effectively assess credit risk and extend credit lines to farmers based on factors such as crop growth and variety.

MYbank applies advanced risk-management technologies to ensure credit lines extended to small-and-medium-sized enterprises (SMEs) are dynamically reviewed and adjusted to match their ability to repay. As a result, MYbank’s non-performing loan (NPL) ratio for its SME business remained fairly consistent in 2021 (1.53%) compared to 2020 (1.52%).

In its 2021 annual report, MYbank announced it will continue to open up its inclusive financing solutions and platform to brands, partner banks and other stakeholders and offer broad services to small-and-medium-sized enterprises and supercharge their growth.